Hyundai cuts production at US plant amid economic downturn

SEOUL: South Korea's Hyundai Motor is cutting production at its plant in the United States because of the current economic downturn.

Hyundai Motor Manufacturing Alabama (HMMA) said the Montgomery facility would operate a reduced production schedule for the rest of this year, with the plant idle for 11 days.

"A number of economic factors beyond our control have resulted in decreased demand for automobiles, generally, in the United States," HMMA spokesman Robert Burns said in a statement seen Tuesday.

"With sales decreases industry-wide in the double digits, we simply cannot continue to produce at the high levels that our plant, and our team members, are capable of."

The plant, which began operating in May 2005, makes the Sonata sedan and the Santa Fe sports utility vehicle.
Hyundai's total sales in the US declined 25.4 percent on the year to September to 24,765 units.

Chairman Chung Mong-Koo said this month the firm would seek to improve profitability by stepping up sales of small cars in Europe. Hyundai, with its affiliate Kia Motors, is the world's fifth-largest carmaker by sales.